Increase Revenue on Your Nashville Rental Property with these Cost Effective Tips

December 7, 2023 TCSMgmt

Increase Revenue on Your Nashville Rental Property with these Cost Effective Tips

Are you earning as much as you’d like on your Nashville rental property? Increasing revenue is the goal of any smart investor, and if you’re looking for some tips on how to do that cost effectively, we have a few ideas. 

Attract and Retain High Quality Nashville Tenants 

Turnover is expensive, and if you want to increase what you earn on your rental property, you need to hold onto your best residents.

There are a lot of costs involved with turnover. Not only are you dealing with the vacancy loss, you’re also paying out of pocket for utilities, maintenance, and the wear and tear expenses that you have to expect every time a tenant moves out. As you prepare your property for a new renter, you have to invest in new paint, clean the floors, and potentially upgrade appliances, fixtures, windows, and lighting. 

A retention plan doesn’t require a huge investment. It delivers a lot of revenue, however, by bringing in consistent rental income, rental increases at renewal time, and a lot less financial risk. Tenants will stay in your property when you communicate with them openly and responsively. It also helps when you’re responsive to their maintenance requests and willing to listen when something is wrong. 

Keep your tenants and earn more money.

Invest in Upgrades and Improvements

You’re looking for the best possible Nashville tenants, and those tenants will expect an attractive, well-maintained property. 

It has to be more than maintained. It has to be updated and modern. 

Making upgrades and improvements to your investment is good for its value. It also helps you earn higher rents.

Here are some of the cost effective upgrades and improvements you can make when you want to earn more on your property: 

  • In-unit laundry. If you don’t already provide a dedicated washer and dryer in your rental property, this can help you attract and retain better tenants and earn more rent.
  • Energy efficient appliances. Don’t continue renting out a home with aging appliances. If you have to continually repair your refrigerator, it’s time to invest in a new one.
  • Fresh paint. This requires an investment, but it’s worth it. Look for durable paint in neutral colors and do the entire wall instead of just touching up little spots. 
  • Hard surface flooring. Carpet gets dirty. It traps allergens. Hard floors earn you more.
  • Good technology, including smart home tech and features like video doorbells.

Simply installing new window treatments or updated faucets and fixtures can earn you more rental income. A modern, well-appointed rental home will always make more money than one that’s aging and showing signs of deterioration. 

Make Sure Your Rental Value Reflects the Nashville Market 

If your rental price isn’t up to current market standards, you’re losing money.

The market is working in your favor right now, as a landlord. Demand for high quality rental housing in Nashville remains high and inventory is still struggling to meet that demand. As interest rates continue to go up and make mortgages more expensive, the dream of homeownership is likely further out of reach for some residents, and they will need to remain in the rental market longer.

Take a careful look at what other homes similar to yours are renting for, and make sure you’re priced competitively and also profitably. Raising the rent at renewal time can feel risky, but it’s expected. When you raise your rent to market standards and still leave a little room to remain competitive, your tenants will stay with you. 

Increase your rent at renewal time, but keep that increase just below the market rents for homes like yours. This will incentivize your tenants to stay in place, protecting you from vacancy and turnover costs. You’ll also earn more money every month, driving up your revenue in the short term and your ROI in the long term. 

Earn More on Your Rental Property by Allowing Pets

Pet-friendly homes earn more than properties that don’t allow pets.

This is one of the most basic ways to increase what you’re earning. You will earn more by avoiding longer vacancies; more than half of the tenants in Nashville who are looking for a rental home own at least one pet. So if you don’t allow them, you’re eliminating a large chunk of the rental market. Once you’ve approved a tenant and their pet, there are opportunities for increased revenue:

  • Charge a pet fee before your tenants move in. This fee can be non-refundable, so you can use it to repair any damage that the pet causes or to clean up any messes and odors that the pet leaves behind. But, you may not need to dip into that fund in order to repair or clean your property. The majority of pets are likely to be clean and well-behaved. You will still keep the non-refundable pet fee. Most pet fees are around $200 or $300 per pet. By charging that, you’re earning some extra cash.
  • There’s also the option of pet rent. Tenants are willing to pay between $25 and $50 every month per pet for the privilege of living with them. That’s a lot of extra revenue over the course of your lease agreement, especially if your tenants renew. 

Tenants who own pets are more likely to renew, too. Studies have shown that tenants with pets are more likely to stay in place when a lease ends than tenants without pets. 

Property ManagementWe think if you prioritize retention, make cost effective improvements to your property, analyze your rental value, and allow pets, you’ll find you’re more profitable as a Nashville rental property owner. We’d be happy to share more tips with you. Contact us at TCS Management. 

TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, NJ, Wilmington, Delaware, Nashville, Tennessee and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.

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